The economy's current state, as reflected in economic indicators, presents a complex picture. Despite mostly positive reports from economists, public perception remains largely negative. This discrepancy has been a focal point for news outlets since the 2024 election.
Wenchen Wang, an Industry Assistant Professor of Business Economics at Illinois Tech’s Stuart School of Business, explores labor market institutions and outcomes. Her research sheds light on workers' views of the economy.
“As a labor economist, I think that the disconnect, or mismatch, between economic indicators and public perception mainly arises from inequality in wages and divergence on employment quality,” says Wang. “Although wage growth is reported at the aggregate level across various income groups, the disparities in how these economic gains are distributed are often overlooked.”
Wang's study on wage disparities among racial and gender groups in Illinois from 2018 to 2022 revealed persistent gaps. Wage increases were predominantly seen among higher-income groups.
“These racial and gender wage gaps also widen as we move up the wage distribution” she notes. “As a result, while overall economic indicators may show improvement, the experiences of specific groups can vary widely.”
In another study co-authored by Wang, factors contributing to employment quality beyond wages were examined. These included job availability, security, meaningfulness, and belonging.
“While unemployment rates are low, many of the jobs being created are part-time, low-wage, or precarious, such as those in the gig economy,” Wang says. This situation impacts workers' job satisfaction. “Although the economy may appear to be booming, individuals may feel they have a job but it might not be a ‘good’ job—one that provides the stability, benefits or wages needed to maintain a comfortable standard of living or build long-term security.”